PayPal Here Vs. Square

The battle for the micro mobile market heats up as PayPal Here enters the ring in direct competition with Square.

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PayPal Here has taken the mobile payments market by storm with a smartphone processing solution that in several ways gets the better of the current market leader, Square.

Boasting live customer support, immediate funding and support for multiple payment channels including free check acceptance, it seems as though Square has some catching up to do despite the company's rapid growth.

If you're considering Square, you will also be interested in our Square review.

See how Square, GoPayment, PayPal Here and others compare using our
Mobile Phone Credit Card Processing Cost Calculator

	Square	PayPal Here	Advantage
Credit & Debit Card Processing Rates	Swiped: 2.75% Manually Entered: 3.50% plus $0.15 Flat rate pricing of $275 per month*	Swiped: 2.70% Manually Entered: 3.50% plus $0.15
	A main competitive advantage that has allowed Square to hold the top spot in the mobile processing market has been the company's ability to offer a flat processing rate with no credit card transaction fee. Until PayPal Here, competing mobile solutions relied on traditional merchants accounts often paired with a third-party mobile application like ROAMpay where transaction fees can range upwards of $0.25. PayPal Here has laid waste to what is perhaps Square's most powerful competitive advantage by entering the market at 2.70% and $0.00 opposed to Square's 2.75% and $0.00. PayPal's deep pockets and established market presence make PayPal Here a formidable adversary, the likes of which Square hasn't yet had to deal with. Square's latest offering of a flat rate of $275 per month may make more financial sense for some businesses than paying PayPal's 2.70% on volume. However, in typical Square style, the company is oversimplifying the way it's marketing the $275 flat rate. Square has imposed quite a few restrictions that will cause many businesses to pay more than the $275 flat rate. Read aboutSquare's flat rate restrictions here. PayPal Here had the edge in the pricing battle with its lower 2.70% rate. But now that Square has come along with a $275 flat rate option, the two are neck and neck.
Check Processing Rate	Check Processing Not Offered	Free
	Checks aren't exactly mainstream these days, and the future of the check printing market is looking pretty bleak. But PayPal has been around a while, and the infrastructure to process and settle checks is already in place, so why not add another bullet point to the PayPal Here feature list? PayPal has added check processing and settlement at no cost to Here's list of features making it literally a free shot at Square.
Start Up Cost	Free	Free
	Square and PayPal Here both supply free card readers and apps. The readers for both Square and Here plug in to the microphone of an electronic device.
Customer Service	No phone number, difficult/impossible to contact, just an online Help Center	Phone number, email support, community support, more
	Square's customer service is virtually non-existent, and contacting a representative via phone is nearly impossible. Square seems to think that a simple online Help Center is enough support for its growing user base. PayPal Here, on the other hand, has all of the support channels you would expect for a company offering credit card processing services. PayPal provides phone, email, and online support for its users. And the company also provides support via a development community.
Credit Check	No Credit Check Required	Credit & Background Check Required
	Square will give the ability to process credit cards to virtually anyone. Whether this is a good thing or not is open for debate, but it's a leg up on PayPal. Many complaints about PayPal Here stem from the credit check and background verification that PayPal requires before issuing a user an account.
Payment Channels	Credit and signature debit cards: Visa, MasterCard, American Express and Discover) Pay with Square (Formally called Card Case)	Credit and signature debit cards: Visa, MasterCard, American Express and Discover) Checks PayPal Electronic Invoices
	The main payment channel of both Square and PayPal Here is credit and signature debit (non-PIN) cards. Each company also offers a proprietary first name payment service that displays nearby customers on a vendors payment screen allowing vendors to charge customers by name or image. Square's service is called Pay with Square, and PayPal Here identifies users through their PayPal account. Both services offer similar functionality, but PayPal's user base is significantly larger. Looking past a somewhat dead heat with first name payment services, PayPal edges ahead with check processing and electronic invoicing.
Funds Availability	Next Day	Immediate*
	PayPal Here boasts the immediate availability of funds, and while this is faster than Square's next day funding, Here doesn't deposit funds directly into a user's checking account. Instead, Here makes funds immediately available in a user's PayPal account where they can access for purchases or withdrawn via an ATM using a PayPal debit card. PayPal Here users that want to transfer funds to their own bank account must initiate a transfer from within their PayPal account, and the transfer process typically takes three days. Square doesn't make its users jump through a proprietary hoop to get their money. Square deposits funds directly into a user's checking account the next day.
Fraud Protection & Security	Encrypted Card Reader, Data Transmission, Etc.	Encrypted Card Reader, Data Transmission, Etc.
	Although Square hit the market with an unencrypted card reader, the company has since cleaned up its act and both Square and PayPal Here are serious about security and fraud prevention. Both companies provide encrypted card readers and other security and fraud protection features.
Supported Devices	iPhone/iPad, Android (Support for Older Devices)	iPhone/iPad, Android
	Although PayPal Here hit the market with support for only iPhone/iPad, the company now supports Android devices as well. Both companies now support iPhone, iPad and Android, but the edge goes to Square for supporting older operating systems. Square's application will run on the iPhone 3G, but PayPal Here's application is compatible only with 3GS phones and above. Check out Square's supported devices and PayPal Here's supported devices for more information.
Market Availability	United States and Canada	United States, Canada, Hong Kong, Australia
	Square hasn't ventured outside of the lucrative U.S. market claiming that, "There is no specific timeline for our international rollout..." Square's U.S. exclusivity likely doesn't affect most users, but those on the northern fringes of the country may be happy to hear that PayPal Here is hitting the market will support for Canada. Less applicable to the U.S. market is Here's support for Hong Kong and Australia.